Asian hotels start to rebound in August

TD Guest Writer

Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly

The hotel industry in Asia Pacific started to see a slight rebound in August 2014, following several months of declining occupancy.

According to the latest data from STR Global, the region’s occupancy rose 1.1% to 72.6% last month, while average daily rates (ADR) edged up 0.3% to US$116.54. This allowed revenue per available room (revPAR) to climb 1.4% to US$84.63.

“Performance was mixed across the region this month,” said Elizabeth Winkle, managing director of STR Global. “India and Indonesia saw strong occupancy growth in August. Demand in India has continued to increase following the elections in April. After a period of uncertainty, the outlook is optimistic. After months of strong rate growth with declining occupancy, Indonesia reported an increase in occupancy (+8.1%), while rate continued to grow (+5.6%), when measured in local currency.”

Singapore's hotels achieved 89% occupancy in August 2014
Singapore’s hotels achieved 89% occupancy in August 2014

Along with India and Indonesia, other major markets to experience revPAR growth in August included China, Australia and Singapore. China’s occupancy recovered to 71.7%, and despite a slight dip in rates, nationwide revPAR increased 0.9% to CNY396.06 (approx. US$64).

Australia saw growth in occupancy (+1.8%) and ADR (+0.4%) pushing revPAR up 2.2% to AU$135.07 (approx. US$120), while in Singapore, continued high occupancy (+2.0% to 89.2%) and a slight 0.5% increase in ADR allowed revPAR to climb 2.4% to SG$265.07 (approx. US$209).

In terms of individual markets, Jakarta (+14.9% to 66.0%) and Shanghai (+11.1% to 73.2%) saw to the strongest occupancy growth, although Bangkok slumped 14.8% to 69.0%.

In US dollar terms, three markets achieved double-digit ADR growth: Auckland (+14.1% to US$117.59), Mumbai (+12.8% to US$112.63) and Osaka (+12.3% to US$138.24), although Beijing (-2.8% to US$89.35) and Bali (-2.6% to US$156.89) declined.

Finally in terms of revPAR, Auckland jumped 20.7% to US$91.12, followed by Mumbai (+20.1% to US$73.77) and Jakarta (+17.7% to US$64.38).

Klook.com

EXPERT OPINION

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